what is the least amount of money i need to have in my 401(k) account?
Share
Sign Up to our social questions and Answers Engine to ask questions, answer people's questions, and connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
what is the least amount of money i need to have in my 401(k) account?
When do you plan to retire, and what’s your life expectancy? Do you, or will you have any other sources of income in retirement; e.g., a pension, income from IRAs, rental income, inheritance, other savings, social security?
What do you expect your monthly costs to be in retirement? Will you own your home outright, or do you still have a mortgage to pay off? Do you plan to rent? Do you still have adult children living with you, or will you have to care for an aging parent? You need to figure out what your monthly income will be, and what your monthly costs will be. That will be some of the information needed to determine the target for your 401k goal.
My personal recommendation would be that you maximize your 401K contribution. If you can’t maximize the allowed limits by IRS, at the least, contribute up to the percentage, to take full advantage of your company’s 401K match. Saving is important but more valuable is how you invest the money? Invest in a well-diversified portfolio or to keep it simple, invest in target retirement funds based on your age.